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Ukraine war
China

US sanctions 5 China-based suppliers to Iranian company selling drones to Russia

  • Separately, 17 Hong Kong businesses are sanctioned for taking part in a ‘significant shadow banking’ system set up for Iranian firms
  • The White House has said it will act against Chinese companies should they violate US sanctions or aid the Russian war effort

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An Iranian drone is displayed during the annual rally commemorating Iran’s 1979 Islamic Revolution in Tehran on February 11. The US has sanctioned five Chinese companies for supplying parts to an Iranian aircraft maker, which the US says is selling drones to Russia. Photo: AP
Orange Wang

Washington has sanctioned a China-based network allegedly supplying parts to an Iranian manufacturer selling drones to Russia for its war on Ukraine.

Additionally, 17 Hong Kong-based firms were sanctioned for their alleged role in a “shadow banking” system spearheaded by Tehran.

The US Treasury Department added five companies based in mainland China and Hong Kong as well as one individual to its Specially Designated Nationals list on Thursday, accusing them of selling and shipping thousands of aerospace components to the Iran Aircraft Manufacturing Industrial Company.

The company makes the Shahed-136 drones, which Iran used to attack an Israeli oil tanker last year; the Treasury Department said the company had exported the drones to Russian forces for attacks in Ukraine.

This undated photograph released by the Ukrainian military shows the wreckage of what Kyiv has described as an Iranian Shahed drone downed near Kupiansk. Photo: Ukrainian military’s Strategic Communications Directorate via AP
This undated photograph released by the Ukrainian military shows the wreckage of what Kyiv has described as an Iranian Shahed drone downed near Kupiansk. Photo: Ukrainian military’s Strategic Communications Directorate via AP

The sanctioned entities are Hangzhou Fuyang Koto Machinery Co; Guilin Alpha Rubber and Plastics Technology Co; Raven International Trade; Shenzhen Caspro Technology Co; and S&C Trade PTY Co. S&C’s China-based employee Yuan Yunxia was also cited.

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